Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.
Industry, Sector and Symbol
Industry Investors, not elsewhere classified
Sub-IndustryAsset Management & Custody Banks
SectorFinance
Phone212-750-7300
Debt
Price-To-Earnings
Sales & Book Value
Annual Sales$1.34 billion
Profitability
Miscellaneous
EmployeesN/A
Next Earnings Date8/7/2019 (Estimated)
OptionableOptionable
Ares Capital (NASDAQ:ARCC) Frequently Asked Questions
What is Ares Capital's stock symbol?
Ares Capital trades on the NASDAQ under the ticker symbol "ARCC."
How often does Ares Capital pay dividends? What is the dividend yield for Ares Capital?
Ares Capital announced a special dividend on Wednesday, May 1st. Stockholders of record on Monday, September 16th will be given a dividend of $0.02 per share on Monday, September 30th. This represents a dividend yield of 9.04%. The ex-dividend date of this dividend is Friday, September 13th. View Ares Capital's Dividend History.
How were Ares Capital's earnings last quarter?
Ares Capital Co. (NASDAQ:ARCC) released its earnings results on Tuesday, April, 30th. The investment management company reported $0.48 EPS for the quarter, beating analysts' consensus estimates of $0.42 by $0.06. The investment management company earned $373 million during the quarter, compared to analyst estimates of $337.96 million. Ares Capital had a return on equity of 10.12% and a net margin of 59.58%. During the same quarter in the previous year, the business earned $0.57 EPS. View Ares Capital's Earnings History.
When is Ares Capital's next earnings date?
What price target have analysts set for ARCC?
5 analysts have issued 1-year price targets for Ares Capital's stock. Their forecasts range from $18.00 to $20.00. On average, they anticipate Ares Capital's stock price to reach $19.30 in the next year. This suggests a possible upside of 7.5% from the stock's current price. View Analyst Price Targets for Ares Capital.
What is the consensus analysts' recommendation for Ares Capital?
5 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Ares Capital in the last year. There are currently 5 buy ratings for the stock, resulting in a consensus recommendation of "Buy." View Analyst Ratings for Ares Capital.
What are Wall Street analysts saying about Ares Capital stock?
Here are some recent quotes from research analysts about Ares Capital stock:
- 1. National Securities analysts commented, "▪ Ares had extremely robust originations during the 3/31/19 quarter with over $1.95 billion of gross commitments versus $1.35 billion of exits, bringing the total portfolio at fair value to $13.06 billion from $12.42 billion Q/Q.
▪ The strong portfolio growth for ARCC also drove a significant core NII/share beat of $0.48 versus our estimate of $0.42. Notably, the heavy origination volume drove capital structuring service fees of $45.0mm on the quarter compared to our estimate of $26.7mm. Through 4/24 ARCC had $183mm of commitments compared to exits and repayments of $747mm with a backlog of $1.1 billion and pipeline of $195mm.
▪ While a platform the size of Ares really only needs one large deal to close for a big increase in commitments, we do expect origination volume to slow Q/Q for the 6/30/19 quarter. As a result, we think structuring fees and earnings will come down a bit but still remain comfortably above the $0.42/share of total dividends (two cents per share supplemental and forty cents regular).
▪ Management reiterated that they expect Ares to benefit from any credit dislocation by means of winning market share from weaker market participants. We tend to agree with this sentiment and expect that ARCC’s underwriting will enable them to withstand a slowing economy or a general pickup in defaults, both of which we think will materialize through 2019.
▪ We are revising our 2019 core NII/share estimate to $1.83 from $1.75 and our 2020 core NII/share estimate to $1.80 from $1.78." (5/1/2019)
- 2. According to Zacks Investment Research, "Shares of Ares Capital have outperformed the industry over the past six months. Further, the company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Estimates have been stable lately ahead of the company's first-quarter 2019 earnings release. Its investment income growth is expected to continue, driven by the acquisition of American Capital, rise in demand for customized financing and improving economy. Further, the company is likely to record rise in investment commitments. However, mounting expenses are likely to hurt bottom-line growth to some extent. Moreover, the presence of high debt levels remain a major near term concern for the company." (4/16/2019)
Has Ares Capital been receiving favorable news coverage?
Media coverage about ARCC stock has been trending neutral this week, InfoTrie reports. The research firm scores the sentiment of media coverage by analyzing more than six thousand news and blog sources in real time. The firm ranks coverage of companies on a scale of negative five to five, with scores nearest to five being the most favorable. Ares Capital earned a news sentiment score of 0.2 on InfoTrie's scale. They also gave news stories about the investment management company a news buzz of 10.0 out of 10, meaning that recent media coverage is extremely likely to have an effect on the stock's share price in the next few days.
Who are some of Ares Capital's key competitors?
Some companies that are related to Ares Capital include Prospect Capital (PSEC), TPG Specialty Lending (TSLX), New Mountain Finance (NMFC), Golub Capital BDC (GBDC), Pennantpark Floating Rate Capital (PFLT), PennantPark Investment (PNNT), Capital Southwest (CSWC), Gladstone Investment (GAIN), Triplepoint Venture Growth BDC (TPVG), Stellus Capital Investment (SCM), Oaktree Strategic Income (OCSI), Safeguard Scientifics (SFE), Arlington Asset Investment (AI), THL Credit (TCRD) and OFS Capital (OFS).
What other stocks do shareholders of Ares Capital own?
Who are Ares Capital's key executives?
Ares Capital's management team includes the folowing people:
- Mr. Michael J. Arougheti, Exec. VP & Co-Chairman (Age 47)
- Mr. Bennett Rosenthal, Co-Founder and Co-Chairman (Age 56)
- Mr. Robert Kipp DeVeer III, CEO & Director (Age 46)
- Mr. Mitchell S. Goldstein CPA, CPA, Co-Pres (Age 52)
- Mr. Michael Lewis Smith, Co-Pres (Age 48)
Who are Ares Capital's major shareholders?
Ares Capital's stock is owned by a number of of institutional and retail investors. Top institutional shareholders include Confluence Investment Management LLC (1.19%), Muzinich & Co. Inc. (0.84%), Bruni J V & Co. Co. (0.57%), Vaughan Nelson Investment Management L.P. (0.56%), LGT Capital Partners LTD. (0.43%) and Bank of Montreal Can (0.42%). Company insiders that own Ares Capital stock include Bates Ann Torre, Eric B Siegel, Michael J Arougheti, Penelope F Roll, R Kipp Deveer, Steve Bartlett and Steven B Mckeever. View Institutional Ownership Trends for Ares Capital.
Which major investors are selling Ares Capital stock?
ARCC stock was sold by a variety of institutional investors in the last quarter, including Blair William & Co. IL, Vaughan Nelson Investment Management L.P., Ares Management LLC, Goldman Sachs Group Inc., Bank of Montreal Can, Natixis Advisors L.P., Philadelphia Financial Management of San Francisco LLC and CNO Financial Group Inc.. View Insider Buying and Selling for Ares Capital.
Which major investors are buying Ares Capital stock?
ARCC stock was bought by a variety of institutional investors in the last quarter, including Skandinaviska Enskilda Banken AB publ , LSV Asset Management, Gillson Capital LP, Marshall Wace LLP, Neuberger Berman Group LLC, Marshall Wace North America L.P., Delphi Financial Group Inc. and Selway Asset Management. Company insiders that have bought Ares Capital stock in the last two years include Bates Ann Torre, Eric B Siegel, Michael J Arougheti, Penelope F Roll, R Kipp Deveer, Steve Bartlett and Steven B Mckeever. View Insider Buying and Selling for Ares Capital.
How do I buy shares of Ares Capital?
Shares of ARCC can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Scottrade, Fidelity and Charles Schwab.
What is Ares Capital's stock price today?
One share of ARCC stock can currently be purchased for approximately $17.96.
How big of a company is Ares Capital?
Ares Capital has a market capitalization of $7.66 billion and generates $1.34 billion in revenue each year. The investment management company earns $858 million in net income (profit) each year or $1.68 on an earnings per share basis.
What is Ares Capital's official website?
How can I contact Ares Capital?
Ares Capital's mailing address is 245 PARK AVENUE 44TH FLOOR, NEW YORK NY, 10167. The investment management company can be reached via phone at 212-750-7300 or via email at [email protected]
MarketBeat Community Rating for Ares Capital (NASDAQ ARCC)
MarketBeat's community ratings are surveys of what our community members think about Ares Capital and other stocks. Vote "Outperform" if you believe ARCC will outperform the S&P 500 over the long term. Vote "Underperform" if you believe ARCC will underperform the S&P 500 over the long term. You may vote once every thirty days.
